AB 1746 Summary

• Enacts the Cal Grant Reform Act, establishing new Cal Grant 2 and Cal Grant 4 programs for community college and non-community college students, replacing the existing Cal Grant A/B programs beginning with the 2024–25 award year.

• Cal Grant 2 awards serve community college students with household incomes below 275-400 percent of federal poverty level (depending on family status), covering nontuition access costs with a minimum award amount adjusted annually by California Consumer Price Index.

• Cal Grant 4 awards serve students at qualifying institutions (University of California, California State University, independent institutions, and for-profit schools) with 2.0+ GPA and household incomes below 275-400 percent of federal poverty level, with award amounts varying by institution type.

• Requires all Cal Grant participating institutions to annually report enrollment, persistence, graduation data disaggregated by race and financial aid status, plus job placement rates for career-focused programs.

• Becomes operative October 1, 2023 for student applications and July 1, 2024 for aid disbursement, contingent on legislative appropriation of sufficient funds; existing Cal Grant programs remain in effect until operative date.